MoD invites bids for £500m contract to run estate

THE Ministry of Defence is inviting contractors to bid for a seven-year contract worth up to £500 million to manage its estate throughout Scotland and Northern Ireland.

Defence Estates says the winning bidder will provide a one-stop shop for all maintenance, repairs, distribution and related management projects for all military housing and buildings.

The MoD will hold an event in Scotland next month where companies can find out more about the contract, which is expected to start in April 2013, replacing three current contracts in Scotland and Northern Ireland.

David Olney, Defence Estates deputy chief executive, said the contract was being designed to create value for money for the taxpayer.

"We recognise the crucial role of the MoD estate in supporting the military front line and the importance of ensuring that every pound is spent as effectively as possible," he said. "By creating a single contract for Scotland and Northern Ireland, we aim to reduce administration costs and generate better value."

Steve Rice, head of the new programme, said: "We are particularly keen that the supply chain should be open to small and medium-sized enterprises, and during the procurement process we will be working with potential prime contractors to explore how these opportunities can be made fully available to SMEs."

The MoD spends an average of 600m a year in Scotland and, together with the armed forces, employs about 19,000 people north of the Border.

An estimated 11,000 Scottish jobs are directly dependent on defence contracts.